Electri­fi­ca­tion without additional grid capacity: on-site generation

Replacing boilers and ovens gives food manufacturers opportunities to make production more sustainable. Many industrial installations are approaching the end of their service life. But grid congestion is preventing the switch to electric technologies at many sites. Stichting Cluster 6 is therefore calling for temporary on-site energy generation. This would allow companies to start investing before additional grid capacity becomes available.

Equipment replacement under pressure

Many food manufacturers are part of the regional industry represented by Cluster 6. FNLI works within this cluster to help establish the conditions needed for more sustainable production. Food manufacturers are investing in heat pumps, electric boilers, and electric or hybrid ovens, among other technologies. They are also investing in thermal energy storage, flexible production, and sustainable energy generation.

The industrial strategy Bridging the Gap to Decarbonization outlines the barriers to these investments. The research is based on data and interviews from 93 industrial production sites.

Industrial installations can last up to forty years, according to Cluster 6. Many boilers and ovens will need replacing over the next ten years. Without opportunities to decarbonize, a new fossil fuel installation is often the only remaining option. According to the foundation, this locks in emissions for decades.

Grid upgrades arrive too late

Electrification is the preferred approach for most companies within Cluster 6. Participating companies need approximately three times their current grid connection capacity to achieve this. Under current schedules, most sites will receive a higher-capacity connection between 2030 and 2035. Many companies need to replace their installations before that connection becomes available.

According to Cluster 6, this is causing companies to postpone or cancel decarbonization projects. Companies are also moving projects abroad.

Temporary energy generation

Cluster 6 proposes on-site electricity generation to bridge this gap. Options include solar and wind power combined with storage, gas turbines, combined heat and power, and fuel cells. According to the foundation, this would allow companies to start investing in electric installations. Cluster 6 says this would deliver climate benefits over the longer term, even if on-site electricity generation initially relies on fossil fuels.

The foundation is calling for clarity on grid expansion schedules. It also advocates appropriate regulations and permits for temporary generation. This includes a solution for temporary nitrogen emissions during the bridging period and construction. Cluster 6 is also calling for predictable energy costs and competitive grid tariffs. Additional financial support should enable investments in grid connections and equipment that provides energy flexibility.

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